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I actually tried this fix, without success and a similar one suggested by Raymond Camden:
http://www.raymondcamden.com/2011/01/12/Diagnosing-a-CFHTTP-issue-peer-not-authenticated/
Infact, PayPal's new security policy requires JSafeJCE. CF10 update 17 & CF11 have a more extensive set of cyphers in the JSafeJCE suiite than previous versions. These are required for PayPal's RESTFUL API.
The only solution was to install CF11, as my CF10 updater kept throwing update installer errors.
On my remote server, I tried updating Railo 4.2+ to Lucee 4.5. The update was successful, but the JRE was not fully updated, but did not break the application server.
In the end, I tried a clean install of Lucee 4.5, and my PayPal connection was restored successfullly once more.
But, I guess different problems require slightly different solutions!
Cheers anyway for your help...
By the way, the link you added to Ben Nadel's blog, is very interesting. That guy is great. Easy to understand...
Thanks for your suggestion anyway.
-Djavax.net.debug=ssl:handshake
And where would I view the debug output? This would have been really useful in relation to this issue?